GROUP OF 77
GENEVA

STATEMENT BY HIS EXCELLENCY MR. DIEGO AULESTIA VALENCIA, AMBASSADOR AND PERMANENT REPRESENTATIVE OF ECUADOR, CHAIRMAN OF THE GROUP OF 77, AT THE SIXTY-SIXTH SESSION OF THE TRADE AND DEVELOPMENT BOARD ON AGENDA ITEM 5 - REPORT OF THE INTERGOVERNMENTAL GROUP OF EXPERTS ON E-COMMERCE AND THE DIGITAL ECONOMY
(Geneva, 27 June 2019)

Mr. President, H.E Mr. Michael Gaffey (Ireland),
Ms. Isabelle Durant, Deputy Secretary-General of UNCTAD,
Mrs. Shamika Sirimanne, Director of the Division of Technology and Logistics

Excellencies,
Distinguished delegates
Ladies and Gentlemen,

1. The Group of G77 and China congratulates the Division on Technology and Logistics for its efforts in the organization of the Intergovernmental Group of Experts on e-commerce and the digital economy. We would like to express our gratitude to H.E. Ms. Kadra Ahmed Hassan, chair of the meeting.

2. We would like to recall the speech of UNCTAD's -our- first Secretary-General, Dr Raúl Prebisch, during the first Conference on Trade and Development in 1964, in which he said "In the industrial countries, technology has brought about far-reaching changes in the economic and social structure. These changes must also be carried out, in one form or another, in the developing countries so that the penetration of modern technology can rapidly lead to higher standards of living". Developing countries have a deep interest in new technologies, innovation and trust they can be a crucial tool in improving the living conditions of its citizens. Several gaps should be overcome and a broad understanding of the implication of the current technological changes is radically important.

3. The initiative to continue discussing the production of statistics is highly appreciated. The Group of 77 and China considers it a practical step to provide countries with very elementary tools to better know their starting point in the digital economy field.

4. The dialogue within the framework of the Intergovernmental Group of Experts on e-commerce and digital economy reflected the many diverse subjects that affect the policy practices countries need to adopt. The Group of 77 and China encourages the continuation of the practice of including opposing views, so as to provide members diverse elements to better understand the subject.

5. The Group of 77 and China would like to highlight the importance of facing data related issues from a developmental perspective. Elements as data, e-commerce, monopolistic practices, among others, are deeply interconnected. Members have an acute need for support to understand the implications of the current state-of-the-art of the many issues the digital economy encompass. The evolution of discussions on multilateral fora constitutes a pressing element for developing countries suffering the consequences of the current digital divide. We acknowledge that national decisions will be taken in a sovereign manner. Though regardless of the path countries take, support from UNCTAD and its analytical strength is highly required.

6. The absence of agreed policy recommendations as an outcome of the Intergovernmental Group of Experts is a consequence of the climate reigning the discussion on the subject, not particularly in UNCTAD, but at the WTO. More than ever the Group of 77 and China expects from the Secretariat a demonstration of commitment with development, political sensitivity and the use of diplomatic skills. There is no secret that within the Group of 77 and China there are different sovereign positions. Please do not get confused, this does not imply we have put aside long-standing positions on the right of development and more particularly on technology transfer.

7. The Group of 77 and China expresses its deep concern on the Secretariat's refusal to tackle the digital divide in the Intergovernmental Group of Experts on e-commerce and digital economy, arguing this issue fall outside UNCTAD's mandate. If such an issue is not pertinent for UNCTAD, what is the purpose then of a Conference on Trade and Development*?

8. We recognize that the conversation on monopolistic and oligopolistic practices by digital platforms is taking place in the Intergovernmental Group of Experts on Competition Law and Policy. Still, the dialogue in the Intergovernmental Group of Experts on e-commerce and digital economy cannot exclude this element. Trade (e-commerce) and competition regulatory framework and policies are deeply interlinked. Countries will need support from UNCTAD in designing their digital industrial policies. South-South cooperation can play an important role in digital transformation of the South. UNCTAD needs to provide more support in this area.

9. Digital economy and e-commerce bring several opportunities and challenges. The decisions that countries take in this field may have different impacts in the short and long term. The Group of 77 and China counts on UNCTAD's contribution to build up a more equitable future and bridge harmful gaps.

I thank you.

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* Reference to comments made by the Secretariat during last Extended Bureau meeting (7.6.2019).